Related Posts
More Posts
Any trust and estate attorney openings in Texas?
Additional Posts in The Real Estate Bowl
Best way to start wholesaling real estate?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.




Subject Expert
I break even (on paper) or have a NOL (on paper) most years which I carry forward to offset profitable years. I force it to show a profit so I don't get classified as a hobby by controlling spending less on improvements some years. If I didn't spend on improvements every year would be profitable with 50% margin.
+ Property tax, insurance, mortgage interest, and depreciation. The latter is typically what brings you to net zero on paper.
We typically write off property taxes, gardening services, cost of any repairs or maintenance, other supplies for the house, mileage when you visit the property, etc. and add in depreciation (value of property excluding land divided by 27.5). Still pay taxes on some income but much less with the deductions
Subject Expert
The deductions are a little different if you’re living there and renting out rooms vs if you’re renting the entire house and living somewhere else. But definitely talk to a CPA to understand what deductions are available to you in either scenario.
Subject Expert
Turbo tax is great when it comes time to fill in the boxes.
A good CPA will help you understand what deductions are common vs. which deductions might raise alarms, and often can help you understand how different decisions might play into your overall tax obligation.
I’ll slightly rephrase the question and then answer. I think you’re asking if it’ll have a negative impact to cash flow. When referring to the total financial impact, the value of the home(s) will be the largest driver.
It should not have a negative impact to cash flow. Assuming you have debt on the property, you should also be able to find “ways” to get an income-producing property to basically 0 taxable income, at least in the early years of the property.
I have a few rental properties in Pittsburgh (higher-cash yielding market) and I’ve never had an income tax liability.